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Mercuria Partners Group to lower Swiss tariffs by pledging US energy investments

Two people familiar with the matter have confirmed that a group of Swiss firms, including energy traders Mercuria and Partners Group, has pledged more than $6 billion to invest in U.S. Energy as part of efforts aimed at lowering U.S. Tariffs on Switzerland.

Donald Trump, the U.S. president, shocked Switzerland in August by imposing import tariffs of 39% on Swiss companies. He justified them by citing the U.S. deficit in trade with the Alpine nation, which had eliminated industrial tariffs last year.

Since the tariff shock in the U.S., the Swiss government and private sector have been working together to put together a package of business and investment measures that will help reduce the U.S. deficit and, with it, Trump’s tariffs.

Last month, the Swiss took proposals to Washington.

Mercuria and Partners Group is among the companies that are working to assist the government. The government has, for example, proposed increasing energy purchases in order to reduce the U.S. Trade Deficit.

In August, senior figures from both companies accompanied Swiss officials to Washington for discussions on tariffs.

Partners Group and Mercuria declined comment.

One source said that Partners Group pledged to double the capacity a U.S. - Mexico natural gas network operated by pipeline operator ESENTIA as part of its North American infrastructure under proposals drafted early September.

The source noted that Mercuria had revised its plans. These include new energy generation, carbon storage and capture, as well U.S. oil extraction.

The person who spoke to me said that when the plans were first drafted in early September, Mercuria and Partners Group, as well as Swiss energy investments, were valued at more than $6 billion.

According to a second source, the Swiss energy package that includes Mercuria Partners Group and other companies comprises investments totaling around $7 billion.

According to sources, these documents were part of a larger package prepared for Swiss Economy Minister Guy Parmelin’s visit to Washington on September 5, where he would meet with Trump officials.

SWISS GOVERNMENT SEEKS RAPID AGREEMENT

Switzerland is still trying to negotiate lower tariffs with U.S. officials.

The Swiss Economy Ministry refused to answer any questions regarding ongoing discussions. However, it did say that the Federal Council was committed to improving tariffs with the United States.

"It optimised its proposal to the U.S. to achieve a quick agreement." The ministry stated that it would continue to conduct diplomatic and political exchanges in order for the tariffs to be reduced quickly.

The Swiss also proposed, as reported by last month's report, the construction of gold refinery capacity in the U.S. to reduce the amount that the U.S. imports of Swiss gold.

According to sources familiar with the situation, the Swiss also propose increasing purchases of U.S. defense materiel. Dave Graham and Dmitry Zhdannikov contributed to the report. Oliver Hirt contributed additional reporting. Mark Potter (Editor)

(source: Reuters)